Óscar René Vargas: Spending on Police and Army
Economist Oscar René Vargas warns that the sustained increase in spending on police and the army in Nicaragua, above GDP growth, represents an unproductive use of public resources that limits economic development and social well-being.
TL;DR
- Increased spending on police and military in Nicaragua is unproductive, according to economist Oscar René Vargas.
- This spending outpaces GDP growth, diverting resources from economic development and social well-being.
- The police budget increased by 52.71% between 2018 and 2026, while GDP grew 3.4% annually.
- The army budget saw an average annual increase of 17.18%, five times higher than GDP growth.
- Investment in repressive forces is unproductive consumption, hindering wealth creation and social progress.
- This trend limits investment in education, health, housing, and water, leading to fewer formal jobs, increased poverty, and inequality.